Developing Mexican Silver-Zinc Production
Xtierra Inc. (TSX-V | XAG) is a Toronto based and TSX Venture Exchange listed mineral exploration and development company focused on the development of precious and base metal projects in the State of Zacatecas, Mexico.
The Bilbao ProjectXtierra's primary project is the Bilbao silver-zinc-lead-copper deposit situated in the Panfilo Natera district of Zacatecas, approximately 50 km south of the state capital of Zacatecas.
In April 2014, RungePinrockMinarco (Canada) Limited (“RPM”) delivered an updated resource estimate and a Preliminary Economic Assessment (“PEA”) on the Bilbao Project.
Small-scale historic production from glory hole and shallow underground development in near surface oxide mineralization at Bilbao.
The Bilbao Project is a polymetallic sulphide and oxide replacement silver-lead-zinc-copper deposit. The total resources estimated by RPM and reported in April 2014 are 6,125,227 tonnes grading 2.31% zinc, 1.81% lead, 0.19% copper, and 65 grams/tonne silver in the Indicated category and 4,509,807 million tonnes grading 1.36% zinc, 1.78% lead, 0.15% copper and 47 grams/tonne silver in the Inferred category.
In the second half of 2014, Xtierra initiated a strategic review to consider alternatives for the development of the Bilbao Project, including the sale of all or a portion of Xtierra’s interest in the Bilbao Project or a corporate transaction, and retained Jennings Capital Inc. (Mackie Research) to assist in the strategic review process. The strategic review has not, to date, identified any acceptable development or financing proposals. There are no assurances that the strategic review process will result in a transaction or, if a transaction is undertaken, as to the commercial terms or timing of such a transaction.
Xtierra’s focus going forward is to maximize the value of its Bilbao Silver-Zinc-Lead project in Zacatecas.
The continuing operations of Xtierra in the short term are dependent upon its ability to raise adequate working capital to continue as a going concern. Additional funding will be required for optimization and feasibility studies, further exploration, and for financing in the longer term to develop the Bilbao Project.
Xtierra has taken steps to reduce administrative and property holding costs in order to maintain its Bilbao properties and has curtailed all other expenditures, while examining strategic alternatives for advancing the Bilbao Project.
La Laguna Project
Xtierra holds 100% interest in La Laguna silver-gold tailings project in Zacatecas.
La Laguna project has a bankable feasibility study completed by Micon International in 2008 which reports an estimated mineral reserve of 6,799,000 tonnes, containing an average of 57.92 grams/tonne silver, 0.31 grams/tonne gold and 328.92 grams/tonne mercury.